Lordstown Motors Corp. intends to sue backer Foxconn Technology Group as the companies remain at odds over a stalled investment in the EV startup, Bloomberg News reported. Foxconn, best known for assembling iPhones for Apple Inc., remains “unlikely” to follow through on that investment, the Ohio company said in a filing with the U.S. Securities and Exchange Commission on Friday. Lordstown accused Foxconn of operating in “bad faith” and said that, without a “prompt resolution,” it “intends to enforce its rights through litigation.” A representative for Foxconn did not immediately respond to a request for comment. Lordstown revealed on May 1 that Foxconn was holding back on a $47 million investment because Lordstown’s stock had fallen below $1, which put the company in violation of the Nasdaq’s listing rules. Foxconn claimed this was a breach of the investment agreement the companies signed late last year, which was supposed to see as much as $170 million invested in the startup. The company warned it may have to seek bankruptcy protection without Foxconn’s funding.
